What has changed?

Lloyds, Halifax and Bank of Scotland have changed the way direct debits are processed for their credit card customers.

Previously, additional payments towards a customer’s credit card balance made before the direct debit payment was due would reduce the regular direct debit amount taken.

But from now on, direct debit amounts WON’T be reduced by any additional payments made.

Lloyds Banking Group says it informed customers of these changes in July, mailed reminders to customers and also texted some customers on Thursday to remind them.

The new Lloyds Banking Group policy isn’t typical across the industry. Major banks including Barclays, NatWest, RBS and Santander told us they deduct the amount a customer has manually paid from their direct debit, unless the manual payment is made within a few days of the direct debit being taken.

‘How many people will be caught out?’

Some credit card customers have been left confused by the changes and want Lloyds Banking Group to reverse the new rules.

MoneySaver Sue, who has a Lloyds credit card, received a letter about the changes this week after missing the July correspondence. She says she was almost caught out by the changes after paying off her credit card in full early.

“How embarrassing it would have been when they attempted to remove £1,785 from my bank account with insufficient funds,” she said. “How many other people will be caught out and will have to claw their own money back?”